Advantages & Disadvantages of International Trade

ADVANTAGES AND DISADVANTAGES OF INTERNATIONAL TRADEInternational trade allows countries to exchange good and services with the use of money as a medium of exchange. Several advantages can be identified with reference to international trade. However international trade does have its limitations as well. Discussed below are both advantages and disadvantages of international trade.

Advantages•Greater variety of goods available for consumption – international trade brings in different varieties of a particular product from different destinations. This gives consumers a wider array of choices which will not only improve their quality of life but as a whole it will help the country grow.

•Efficient allocation and better utilization of resources since countries tend to produce goods in which they have a comparative advantage. When countries produce through comparative advantage, wasteful duplication of resources is prevented. It helps save the environment from harmful gases being leaked into the atmosphere and also provides countries with a better marketing power.

•Promotes efficiency in production as countries will try to adopt better methods of production to keep costs down in order to remain competitive. Countries that can produce a product at the lowest possible cost will be able to gain a larger share in the market. Therefore an incentive to produce efficiently arises. This will help standards of the product to increase and consumers will have a good quality product to consume.

•More employment could be generated as the market for the countries’ goods widens through trade. International trade helps generate more employment through the establishment of newer industries to cater to the demands of various countries. This will help countries bring down their unemployment rates.

Disadvantages
•It could lead to a more rapid depletion of exhaustible natural resources. As countries begin to up their production levels, natural resources tend to get...

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Advantages and Disadvantages of InternationalTrade
Name of Student
Name of Institute
Date
Contents
Introduction 3
When there is no trade between the rest of the world and China 3
When there is a trade between the rest of the world and China 4
Free trade is the best trade policy 6
Free trade hard to achieve 7
Introduction
Textile industries are significant segment, which distinguished country’s success by which nations establish to accomplish its respective aimed goal. Internationaltrade of textile is the exchange of textile between countries. The trade of textile contributes to the economy of the world. In which the prices of textiles, and their supply and demand, that affect and get affected by global events. Trading textiles globally provide countries and consumer the opportunity to expose to services and goods not available in their own country. Almost every quality of textile can be found in internationaltrade.
A textile that can be sold in the global market is called as an exporter, and textile which can be bought from the global market is called as an importer. Export and import are accounted for current account of country’s in the balance of payment
When there is no trade between the rest of the world and China
Exporting means...

...2000). Originally, applying tariffs was first based on financial purpose, so it is a regular but most significant source of fiscal revenue to governments. Generally, a country with strong economy and lying in an advantageous position tends to pursue a free trade policy. At that time, the principal function of tariffs is tax collection. By contrast, a country with weak economy and lying in a disadvantageous position tends to pursue policy protectionism. Under such circumstances, Tariff protection may become the most important or even major function to governments. So high tariffs will barrier the imported goods and hinder the development of internationaltrade. Moreover, with the heavy government intervention in the economy, tariff has been endowed with the function of economic regulation. Thus, tariffs have become an important macroeconomic policy. It follows that countries’ tariff level will directly affect their interests in the foreign trade. The essay argues that the government tariffs have a significant impact on imported goods in terms of changing their quantity, in addition to providing benefits to the national economy such as protecting domestic products and adjusting economic growth rate. Despite the disadvantages of tariffs on damaging customers’ interests and increasing smuggling cases, it will have positive future trends.
In the first place, one of the most important impacts of tariffs is...

...7 Types of Taxes
Taxes Paid by the Individual
Income taxes- are governments impose on financial income generated by all entities within their jurisdiction. By law, business and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. It has two basic types, they are personal income tax and another one is corporation income tax.
Personal income tax levied on incomes of individuals, households, partnerships, and sole-proprietorships
Corporation income tax, levied on profits (net earnings) of incorporated firms. a tax on the net income of an individual or a business. The common point of this two types are the income tax rates are generally lower for those who makes less money.
Property taxes- it also referred to as millage tax. It is a tax assessed on real estate by the local government. This tax is paid by who owns property such as land, a home or vehicles.
Consumptive taxes- a tax only on income that one spends on goods and services. Example, sales tax. Sales taxes are more or less state or local taxes and usually added to the buying cost of certain things. These taxes will be based on the cost of items and help fund for services provided by state and local government, such as roads, police, and firefighters. Another example are toll road fees, it also are a type of consumption tax....

...Internationaltrade has always been an attractive idea for merchants and businessman since time immemorial. There is always an opportunity to sell more, make more profits, increase the market share, remove seasonality fluctuations of demand and supply, increase in productivity, and of course a business or even a country learns a lot on the product development technologies and strategies from doing business with other countries or regions. Trade also leads to higher GDP, better and more choices of products for consumers, increase in competition in domestic market leads to competitive prices which is good for consumers, competition also leads to better quality in goods and services, and reduces unemployment and poverty. Thus, this leads to growth and maturing of a countries economy as a whole and also the businesses involved.
Trade also leads to some problems that are not that obvious at the onset of trade. Even though trade tends to increase employment in one nation it may lead to job cuts in another. As businesses shift manufacturing for instance from richer nations to third world or developing nations, they take advantage of the cheap labor, weaker labor policies, weaker environmental policies, and support of the governments in these countries. They are able to recruit more and thus produce more for less. But this leads to job cuts in the parent rich nations....

...﻿ In spite of the strong theoretical case that can be made for free internationaltrade, every country in the world has erected at least some barriers to trade. Trade restrictions are typically undertaken in an effort to protect companies and workers in the home economy from competition by foreign firms. A protectionist policy is one in which a country restricts the importation of goods and services produced in foreign countries. The India, for example, uses protectionist policies to limit the quantity of foreign- produced sugar coming into country. In general, protectionist policies imposed for a particular good always reduce its supply, raise its price, and reduce the equilibrium quantity. Protection often takes the form of an import tax or a limit on the amount that can be imported, but it can also come in the form of voluntary export restrictions and other barriers. Tariff rates on dutiable imports have fallen dramatically over the course of history. A tariff is a tax on imported goods and services. A tariff raises the cost of selling imported goods. It thus shifts the supply curve for goods to the left. The price of the protected good rises and the quantity available to consumers falls. Protectionist policies reduce the quantities of foreign goods and services supplied to the country that imposes the restriction. As a result, such policies shift the supply curve to the left for the good or service whose imports...

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InternationalTrade
Bonus Assignment 3
Internationaltrade and economics
Shanghai University of Finance and Economics
May 30, 2014
Advantages of trade liberalization
During these last decades, the world economy has experienced rapid growth. This growth has been fueled in part by the more rapid growth of internationaltrade. Trade growth, in turn, results from both technological developments and concerted efforts to reduce barriers to trade. Some developing countries have opened their economies to take full advantage of opportunities for economic development through trade, but many are those who abstained. Trade barriers that persist in industrialized countries are concentrated on agricultural products and manufacturing intensive labor, for which developing countries have a comparative advantage. The pursuit of trade liberalization, particularly in these areas, both industrialized and developing countries, help the poorest out of extreme poverty while also benefiting the industrialized countries themselves.
Policies that open economy to trade and investment around the world are essential to sustained economic growth. For several decades, no country experienced economic success, demonstrated by the substantial...

...﻿The Function of InternationalTrade
In general, the function of international business is exchange of products, capitals and services from one nation to another nation, in short it is namely as export and import. Global trading gives consumer and countries an opportunity to expose the product and services which cannot derived in their own country. Internationaltrade enable a country to participate in global economy and it is also a good chance of Foreign Direct Investment (FDI) which that the individuals invest into foreign companies to raise their income. Malaysia is one of the countries which are participating in the internationaltrade. Malaysia is an open economy which have depends on external trade to achieve its economy growth (Yusoff, 2005). The World Bank Group has reported that the Gross Domestic Product (GDP) is value 303.53 billion US dollars in Malaysia and in year 2012, the real GDP grew 5.6%. To achieve the goals of the Economic Transformation Programme, Malaysia’s economy continued to grow in 2012.
Function of Malaysia in Export
Malaysia has an export oriented economy, due to the high quality and reliability, Malaysian products has a good reputation in external trade and it was admiration and respect from importing countries. Malaysia’s total trade in July 2013 amounted to RM118.59 Billion, increased by 5.3%...